In This Article:
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Net Investments: EUR6.9 billion, with 95% taxonomy aligned.
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Adjusted EBITDA: EUR4 billion, reaching over 75% of the lower end of full-year guidance.
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Adjusted Net Income: EUR1.6 billion, exceeding 85% of the lower end of full-year guidance.
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Offshore Wind EBITDA: EUR1.079 billion, driven by better wind conditions.
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Onshore Wind and Solar EBITDA: EUR990 million, supported by organic growth and higher hedge prices.
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Flexible Generation EBITDA: EUR1.447 billion, with lower earnings due to normalizing market conditions.
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Supply & Trading EBITDA: EUR465 million, following a strong operational performance.
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Adjusted Operating Cash Flow: EUR4.4 billion, influenced by operational performance and seasonal effects.
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Net Debt: Increased to EUR12.2 billion due to investments and timing effects.
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Share Buyback Program: EUR1.5 billion over 18 months.
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Dividend Target: EUR1.1 per share for fiscal year 2024.
Release Date: November 13, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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RWE AG (RWEOY) has invested EUR6.9 billion net in 2024, with 95% of investments being taxonomy aligned, demonstrating a strong commitment to sustainable growth.
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The company has 11.2 gigawatts of capacity under construction across all technologies, indicating robust expansion efforts.
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RWE AG (RWEOY) delivered a good financial performance despite declining commodity prices, with an adjusted EBITDA of EUR4 billion.
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The company has initiated a significant share buyback program, planning to return an additional EUR1.5 billion to shareholders over 18 months.
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RWE AG (RWEOY) increased its guidance for adjusted EBITDA, EBIT, and net income to the middle of the guidance ranges, reflecting confidence in its financial outlook.
Negative Points
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RWE AG (RWEOY) faces higher uncertainties and risks in the development of US offshore wind and the hydrogen economy in Europe, leading to a reduction in its CapEx program for the next two years.
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The company has experienced lower prices for unhedged positions and weaker weather conditions in the US, impacting its financial performance.
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Net debt increased to EUR12.2 billion due to investments and timing effects, which could pose financial challenges.
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There are concerns about potential changes in US energy tax credits, which could affect RWE AG (RWEOY)'s onshore growth plans.
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The company acknowledges the need for more pragmatic build-out of new capacity, especially gas, in Germany, which could require strategic adjustments.